WA Surplus Lines Broker
WA Surplus Lines Broker Exam Study Guide
Questions and Answers 2025
When are you required to file premium tax return for the previous calendar year by? -
Correct Answer ✔March 1st
What does statutory accounting mean? -Correct Answer ✔Rules state that certain assets
are non-admitted (don't count) as you can't pay claims with them.
Bonds rated ___________ and higher are considered investment grade. -Correct Answer
✔1 & 2
What does IBNR stand for? -Correct Answer ✔Incurred but not reported
True or false, individuals whose Surplus Line Brokers license was active and did not have
an active affiliation with a business entity are required to file a premium tax return, even
if no business was transacted? -Correct Answer ✔TRUE
Which office assigns the bonds rating? -Correct Answer ✔SVO (Securities Valuation
Office)
What is Combined Ratio? -Correct Answer ✔Loss Incurred + Loss Expense / Earned
Premium
What are General Interrogatories? -Correct Answer ✔General questions about the
Company.
WA Surplus Lines Broker
,WA Surplus Lines Broker
Financials: what is Schedule P include? -Correct Answer ✔Incurred & open losses
What does NAIC stand for? -Correct Answer ✔National Association of Insurance
Commissioners
What countries are included on AM Best report? -Correct Answer ✔US and Canada
Where can you find a list of alien companies and Lloyd syndicates with city/country of
domicile? -Correct Answer ✔International Insurers Department Plan of Operation.
What does IRIS stand for? -Correct Answer ✔Insurance Regulatory Information System (
Exceptional value is BAD or unusual)
When was the WA State regulatory stamp changed?
A. January 30, 1975
B. January 1, 2012
C. March 31, 2000
D. March 1, 2011 -Correct Answer ✔B, January 1, 2012
Where/when should the registry stamp be placed on documents to be delivered to the
insured? -Correct Answer ✔Every contract, including binder, on the face of the policy.
SLB required to initial next to statement.
WA Surplus Lines Stamp should read: -Correct Answer ✔"This contract is registered and
delivered as a surplus line coverage under the insurance code of the state of
Washington, Title 48 RCW. It is not protected by any Washington state guaranty
association law."
WA Surplus Lines Broker
, WA Surplus Lines Broker
How long must a surplus line broker keep financial records of a foreign unauthorized
insurer? -Correct Answer ✔5 years
RE: 48.18.180 'Stated Premium' which statements are TRUE:
A. Premium shall be inclusive of all fees, charges, premium.
B. Each violation of this statute is a gross misdemeanor
C. If premium on policy differs from binder by less than $10, insurer not required to
notify insured.
D. All of the above -Correct Answer ✔
Max amount of time license can be suspended due to conviction of felony? -Correct
Answer ✔Not to exceed 12 months
When would WA State Insurance Commissioner waive the examination? -Correct Answer
✔If nonresident person holds an equivalent surplus lines license in another state.
Which of the following statements are true regarding WAC 284-15 'Solvent Insurer'?
A. Brokers responsibility to substantiate financial condition of foreign unauthorized
insurer
B. Evidence of financial condition must be retained for 5 years
C. Any unauthorized insurer listed on quarterly listing of alien insurers (NAIC) is deemed
adequately documented
D. All of the above -Correct Answer ✔
As specified in RCW 48.15.150, each policy issued to an unauthorized insurer as a
surplus line contract must designate _______ as the person upon whom service of
process may be made.
A. CFO
WA Surplus Lines Broker
WA Surplus Lines Broker Exam Study Guide
Questions and Answers 2025
When are you required to file premium tax return for the previous calendar year by? -
Correct Answer ✔March 1st
What does statutory accounting mean? -Correct Answer ✔Rules state that certain assets
are non-admitted (don't count) as you can't pay claims with them.
Bonds rated ___________ and higher are considered investment grade. -Correct Answer
✔1 & 2
What does IBNR stand for? -Correct Answer ✔Incurred but not reported
True or false, individuals whose Surplus Line Brokers license was active and did not have
an active affiliation with a business entity are required to file a premium tax return, even
if no business was transacted? -Correct Answer ✔TRUE
Which office assigns the bonds rating? -Correct Answer ✔SVO (Securities Valuation
Office)
What is Combined Ratio? -Correct Answer ✔Loss Incurred + Loss Expense / Earned
Premium
What are General Interrogatories? -Correct Answer ✔General questions about the
Company.
WA Surplus Lines Broker
,WA Surplus Lines Broker
Financials: what is Schedule P include? -Correct Answer ✔Incurred & open losses
What does NAIC stand for? -Correct Answer ✔National Association of Insurance
Commissioners
What countries are included on AM Best report? -Correct Answer ✔US and Canada
Where can you find a list of alien companies and Lloyd syndicates with city/country of
domicile? -Correct Answer ✔International Insurers Department Plan of Operation.
What does IRIS stand for? -Correct Answer ✔Insurance Regulatory Information System (
Exceptional value is BAD or unusual)
When was the WA State regulatory stamp changed?
A. January 30, 1975
B. January 1, 2012
C. March 31, 2000
D. March 1, 2011 -Correct Answer ✔B, January 1, 2012
Where/when should the registry stamp be placed on documents to be delivered to the
insured? -Correct Answer ✔Every contract, including binder, on the face of the policy.
SLB required to initial next to statement.
WA Surplus Lines Stamp should read: -Correct Answer ✔"This contract is registered and
delivered as a surplus line coverage under the insurance code of the state of
Washington, Title 48 RCW. It is not protected by any Washington state guaranty
association law."
WA Surplus Lines Broker
, WA Surplus Lines Broker
How long must a surplus line broker keep financial records of a foreign unauthorized
insurer? -Correct Answer ✔5 years
RE: 48.18.180 'Stated Premium' which statements are TRUE:
A. Premium shall be inclusive of all fees, charges, premium.
B. Each violation of this statute is a gross misdemeanor
C. If premium on policy differs from binder by less than $10, insurer not required to
notify insured.
D. All of the above -Correct Answer ✔
Max amount of time license can be suspended due to conviction of felony? -Correct
Answer ✔Not to exceed 12 months
When would WA State Insurance Commissioner waive the examination? -Correct Answer
✔If nonresident person holds an equivalent surplus lines license in another state.
Which of the following statements are true regarding WAC 284-15 'Solvent Insurer'?
A. Brokers responsibility to substantiate financial condition of foreign unauthorized
insurer
B. Evidence of financial condition must be retained for 5 years
C. Any unauthorized insurer listed on quarterly listing of alien insurers (NAIC) is deemed
adequately documented
D. All of the above -Correct Answer ✔
As specified in RCW 48.15.150, each policy issued to an unauthorized insurer as a
surplus line contract must designate _______ as the person upon whom service of
process may be made.
A. CFO
WA Surplus Lines Broker
